Defense Stocks Sink After Democratic Sweep As TD Cowen Warns Trump's "Branded" Programs Are Dead Democrats have won majorities in the House and Senate. It's not just data centers and reindustrialization that will be under threat, but also the rearmament cycle, as defense stocks sink in US premarket trading and tumble in Europe's cash session.
The larger-than-expected majorities will give Democrats much greater leverage in negotiations with the White House and will become a headache for the defense industry. Traders on both sides of the Atlantic sold defense stocks on Wednesday, with Lockheed Martin and Northrop Grumman tumbling 3% in premarket trading.
A Goldman Sachs basket of European defense companies slid as much as 4.1%, its biggest intraday decline in more than four months.